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HomeMy WebLinkAboutResolutions - 2022.02.24 - 3531240A K LA COUNTY MICHIGAN BOARD OF COMMISSIONERS February 24, 2022 MISCELLANEOUS RESOLUTION #22-040 Sponsored By: William Miller III IN RE: Water Resources Commissioner - Contract Connection of the City of Pontiac Sewage Disposal System to the Clinton -Oakland Sewage Disposal System Chairperson and Members of the Board: WHEREAS several sections of sewer pipe in the City of Pontiac Sewage Disposal System have been identified as needing repair, rehabilitation, or replacement; and WHEREAS the City of Pontiac Sewage Disposal System has determined that the most efficient and cost- effective method of resolving this matter is to replace some of the existing pipe and connect a portion of Pontiac's Sewage Disposal System to a sewer owned by the Clinton -Oakland Sewage Disposal System for conveyance to the Clinton River Water Resources Recovery Facility; and WHEREAS both the City of Pontiac Sewage Disposal System and the Clinton -Oakland Sewage Disposal System are owned by the County of Oakland and maintained and operated by the Water Resources Commissioner on behalf of the County; and WHEREAS the Clinton -Oakland Sewage Disposal System was created in 1967 and now serves 12 municipalities including, Auburn Hills, Clarkston, Independence Township, Lake Orion, Oakland Township, Orion Township, Oxford Township, Oxford Village, Rochester, Rochester Hills, Waterford Township and West Bloomfield Township; and WHEREAS each of the 12 municipalities was required to pay its fair and equitable proportional amount for connecting to the Clinton -Oakland Sewage Disposal System's force main; and WHEREAS the City of Pontiac Sewage Disposal System has agreed to pay its fair share to likewise connect to the Clinton -Oakland Sewage Disposal System; and WHEREAS it has been determined that an equitable "buy in" charge for connecting to the Clinton -Oakland Sewage Disposal System's force main is 10.7716% of the initial project costs, which amounts to $400,048; and WHEREAS in the subsequent rate -setting process, the City of Pontiac Sewage Disposal System will contribute the same 10 7716% of the project cost. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves the transfer of $400,048 from the City of Pontiac Sewage Disposal System as its fair and equitable share to the Clinton -Oakland Sewage Disposal System for the purpose of connecting to the Clinton -Oakland Sewage Disposal System force main. BE IT FURTHER RESOLVED the FY 2022 budget is amended as detailed in the attached Schedule A. Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III. DateFebruary 25, 2022 David Woodward, Commissioner 't/yJnw�WI1vy� `�" Date: February 28, 2022 Hilarie Chambers, Deputy County Executive II I 1 Date: March 01, 2022 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2021-02-09 Economic Development & Infrastructure - Recommend to Board 2021-02-24 Full Board VOTE TRACKING Motioned by Commissioner Penny Luebs seconded by Commissioner Karen Joliat to adopt the attached Contract: Connection of the City of Pontiac Sewage Disposal System to the Clinton -Oakland Sewage Disposal System. Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Charles Moss, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray. Robert Hoffinan (20) No: None (0) Abstain: None (0) Absent: (0) The Motion Passed. ATTACHMENTS 1. WRC MR Connect City of Pontiac SDS to Clinton Oakland SDS Schedule A 2. Copy of Capital Cost Allocation for POC Perry Street Forcemain 3. Memo to Accompany POCSDS-COSDS Resolution 4. COPSDS-COSDS Agreement STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on February 24, 2021 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan on Thursday, February 24, 2022. Lisa Brown, Oakland County Clerk/Register of Deeds Oakland County, Michigan Water Resources Commissioner- Connection, of Me City of Pontiac Sewage Disposal System to the Clinton Oakland Sewage Disposal System Schedule "A" DETAIL Operating Funtl Budget Project RIE Fund Name Division Name (Funtl# I Division 41 Pmgmm#IAccou.#I Ung n Affiiiate Reference) UnH R Ponkac Sewer Fund Drain Commissioner AEmin 57434 6010101 149140 665822 R Clinton Oakland Sewage Disposal System Fund Dram Commissioner Admin 58600 6010101 149140 665822 R Ce-don Oakland Sewage Disposal System Fund Drain CommissionerAdmin 58600 6010101 149140 695500 574M E Ponkac Sewer Fund Dram Commissioner Admin 574U 6010101 149140 788001 58600 Project# ActuaitylAnalysail Account TRle Planned Use of Balance Planned Use of Balance Transfer In Total Revenues Transfer Out Total Expenses FY 2022 FY 2023 FY 2024 Amendment Amendment Amendment $ 401 $ - $ (400,048J - - 400.048 $ 400,M s - s S 400,048 $ - S - $ 400,048 S - $ Line Description (a) Total Forcemain Length (feet) (b) Estimated Length of Forcemain Shared (feet) (c) Percent of Forcemain Shared by Length (d) Average PSPS Flow Rate (cfs) (e) Average Bay Street Flow Rate (cfs) (f) Estimated Buy -In Percent (g) Perry Street Forcemain Bid Tab Cast (h) Percentage of Cost (i) Estimated Buy -in Cost ValuelNotes 11,000 10,299 from FTCH 93.627% (b/a) 11.3 1.3 11.504% (e/d) $3,714,028 from PSPS Bid Tab 10.771% (f x c) $400,048.001(h x g) From: Sedki, Maria <mesedkiLafishbeck.com> Sent: Wednesday, October 6, 2021 12:46 PM To: Coburn, Brian ccoburnbr@oakgov.com>; Bantios, Evans <banti ose@ oa kgov.com> Subject: FW: Silverdome/Bay St 650 feet from PSPS is the connection distance from PSPS. The length of pipe DS of the connection to the 42" is approx. 8590 feet. The total length of the PSPS pipe from the building to the connection to the existing gravity outlet is approx. 9,240. 9240 Form DC-001 OAKLAND COUNTY MEMORANDUM WATER RESOURCES COMMISSIONER TO: William Miller, Chairperson Economic Development & Infrastructure Committee FROM: Brian Coburn, P.E., WRC Manager SUBJECT: Shared Use of Clinton -Oakland Sewage Disposal System by the Pontiac Sewage Disposal System. DATE: January 12, 2022 Recognizing that several sections of sewer pipe in the Pontiac Sewage Disposal System need repair, rehabilitation, or replacement, the Oakland County Water Resources Commissioner (WRC) and his, staff embarked on a project to find the most efficient and cost-effective solution. That solution involves replacing some of the existing pipe and connecting a portion of Pontiac's Sewage Disposal System to a sewer owned by the Clinton -Oakland Sewage Disposal System for conveyance to the Clinton River Water Resource Recovery Facility. Both sewer systems are owned by Oakland County and maintained and operated by the WRC. Currently, the Clinton -Oakland system, which was created in 1967, serves a dozen municipalities including: Auburn Hills, Clarkston, Independence Township, Lake Orion Village, Oakland Township, Orion Township, Oxford Township, Oxford Village, Rochester, Rochester Hills, Waterford Township and West Bloomfield Township. Each was required to pay its fair and equitable proportional amount to connect to the Clinton -Oakland system. Requiring Pontiac to pay its equitable portion is a proposition endorsed by each of the impacted municipalities, including Pontiac. Pontiac's equitable "buy -in" charge for connecting to the force main represents 10.7716% of the initial project costs, or $400,048. In all subsequent rate -setting contributions, Pontiac's share will be 10.7716% of the project cost. The shared use of the sanitary sewer by both systems results in a project savings of 25%, which saved the rate payers in the City of Pontiac approximately $500,000. These funds can now be used to rehabilitate other components of the Pontiac System. A budget amendment authorizing the transfer of $400,048 from the City of Pontiac Sewage Disposal System as its fair and equitable share to the Clinton -Oakland Sewage Disposal System for the purpose of connecting to the Clinton -Oakland Sewage Disposal System force main is required. Requested Action: Adopt the corresponding resolution authorizing the transfer of funds as described above. OAKLAND COUNTY WATER RESOURCES COMMISSIONER ` Page 1 of 1 Rev.: 02/12/2018 SYSTEM CONNECTION AGREEMENT BETWEEN THE CITY OF PONTIAC SEWAGE DISPOSAL SYSTEM rml e THE CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM THIS AGREEMENT is made and entered into as of the 14th day of December, 2021, by and among the COUNTY OF OAKLAND, a Michigan constitutional corporation, by and through its Water Resources Commissioner, County Agency, on behalf of the CITY OF PONTIAC SEWAGE DISPOSAL SYSTEM (hereinafter referred to as the "City of Pontiac Sewage Disposal System"), and the COUNTY OF OAKLAND, a Michigan constitutional corporation, by and through its Water Resources Commissioner, County Agency, on behalf of the CLINTON- OAKLAND SEWAGE DISPOSAL SYSTEM, (hereinafter referred to as the "Clinton -Oakland Sewage Disposal System" and together with the City of Pontiac Sewage Disposal System, the "Systems"). RECITALS WHEREAS the City of Pontiac Sewage Disposal System was established pursuant to the City of Pontiac Sewage Disposal System Contract dated April 19, 2012, and the provisions of Act 342, of the Public Acts of Michigan, 1939, as amended ("Act 342"), with the Oakland County Water Resources Commissioner as the County Agency for the City of Pontiac Sewage Disposal System; and WHEREAS the Clinton -Oakland Sewage Disposal System was established by Miscellaneous Resolution No. 4342, adopted June 22, 1964, pursuant to the provisions of Act 185, of the Public Acts of Michigan, 1957, as amended, by the Oakland County Board of Supervisors (now known as the Oakland County Board of Commissioners); and WHEREAS the County of Oakland designated the Water Resources Commissioner as the County Agency for the Systems as provided by Act 342; and WHEREAS the Systems are currently owned by Oakland County, and both are operated and maintained by the Water Resources Commissioner's office as County Agency pursuant to Act 342; and WHEREAS the Clinton -Oakland Sewage Disposal System financed and constructed the Perry Street Pump Station and force main to divert a portion of the flow from the Clinton - Oakland Sewage Disposal System to the Clinton River Water Resource Recovery Facility (CRWRRF) pursuant to the Wastewater Services Agreement between the parties dated April 1, 2013; and, WHEREAS due to the deteriorating condition of some sewer pipes downstream of the Bay Street Pump Station in the City of Pontiac Sewage Disposal System, it has been determined that the most efficient and cost-effective means of addressing this issue is to abandon the pipes currently utilized and connect said pump station to the Clinton -Oakland Sewage Disposal System force main discharging to the Clinton River Water Resource Recovery Facility; and WHEREAS the cost to construct the Perry Street force main was $3,714,028, and 93.627 percent of the force main would carry flow from both the Clinton -Oakland Sewage Disposal System and the City of Pontiac Sewage Disposal System. The City of Pontiac Sewage Disposal System contributes 11.504 percent of the flow in the shared pipe making its share of the capital cost for the force main $400,048; and, WHEREAS this Agreement is necessary to promote the health and welfare of the residents of certain municipalities served by the Systems, which services and improvements would likewise benefit Oakland County and its residents, and the parties hereto have concluded that the terms contained in this Agreement represent the most economical and efficient solution to the deteriorated condition of the existing pipes in the City of Pontiac Sewage Disposal System; and WHEREAS each of the communities currently served by the Clinton -Oakland Sewage Disposal System was required to pay for connecting to the Clinton -Oakland Sewage Disposal System's force main; and WHEREAS the Water Resources Commissioner has agreed to transfer funds from the City of Pontiac Sewage Disposal System to the Clinton -Oakland Sewage Disposal System as a one-time, capital "buy -in" connection fee in the amount of $400,048; and 2 WHEREAS the $400,048 represents a proportional amount calculated to be 10.771 percent to compensate the Clinton -Oakland Sewage Disposal System for the City of Pontiac Sewage Disposal System's share of the construction cost of a portion of the force main in exchange for the permanent use of a portion of the force main; and WHEREAS after connection to the Clinton -Oakland Sewage Disposal System, the City of Pontiac Sewage Disposal System will annually set such rates and charges as are necessary to contribute each year to the Clinton -Oakland Sewage Disposal System an amount equal to 10.771 % of all operations and maintenance as well as future capital costs for the shared use sewer identified in Exhibit A; and WHEREAS the County owns the Systems, and the payment from one system to the other involves a transfer of funds held by the County for the benefit of the respective system pursuant to the General Appropriations Act, Act 621 of the Public Acts of Michigan, 1978, ("General Appropriations Act"). THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE as follows: 1. Initial Caoital Contribution. A one-time capital contribution shall be made by the City of Pontiac Sewage Disposal System to the Clinton -Oakland Sewage Disposal System in the amount of $400,048. 2. Future Operation and Maintenance of Share Sanitary Sewer. The City of Pontiac Sewage Disposal System will annually set such rates and charges as are necessary to contribute each year to the Clinton -Oakland Sewage Disposal System in an amount equal to 10.771 percent of all operations and maintenance as well as future capital costs for the shared use sewer, which is identified in Exhibit A. 3. Prohibition of Stormwater Connections. The County Agency shall establish and promulgate general rules and regulations controlling the discharge of sanitary sewage into the Clinton -Oakland Sewage Disposal System. 4. Public Puroose. The parties enter into this Agreement to serve the public health and welfare of the people of the State of Michigan, especially in the service district of the Clinton -Oakland Sewage Disposal System. 5. Amendments. This Agreement may be amended only in writing executed by the persons with legal authority to bind the respective parties to this Agreement. 6. Jurisdiction. The rights and remedies set forth in this Agreement are not exclusive and are in addition to any of the rights or remedies provided by law or equity. This Agreement and all actions arising under it shall be governed by, subject to, and construed according to the law of the State of Michigan. 7. Term. This Agreement shall become effective on December 14, 2021. This Agreement shall terminate on a date which is forty (40) years from December 14, 2021, more specifically December 13, 2061, unless automatically renewed as provided in Paragraph 12. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement may be executed in any number of counterparts. 8. Termination. Notwithstanding any other term or provision in any other section of this Agreement, either party, upon a minimum of 180 calendar days written notice to the other party, may terminate this Agreement for any reason, including convenience, without incurring any penalty, expense, or liability to the other party. The effective date for any such termination shall be clearly stated in the notice. 9. Term Renewal. The Agreement shall automatically renew at the conclusion of the initial term ending on December 13, 2061, for an additional ten (10) years unless written notification to the County Agency is provided on or before 180 calendar days in advance of the date of renewal stating its intent not to renew this Agreement. The automatic renewals of this Agreement shall not preclude a review of its terms and the parties are encouraged to reaffirm or amend its terms as necessary. The parties may, in writing, mutually agree to a longer renewal term. 10. Governino Law. This Agreement is made and entered into in the State of Michigan and shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan. The language of all parts of this Agreement is intended to and, in all cases, shall be construed as a whole according to its fair meaning, and not construed strictly for or against any party. As used in this Agreement, the singular or plural number, possessive or non -possessive shall be deemed to include the other whenever the context so suggests or requires. 11. Reservation of Riohts; Governmental Function. This Agreement does not, and is not intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, power, obligation, duty, or immunity of the parties. E In addition, the parties maintain that the obligations set forth in this Agreement will be in the exercise or discharge of a governmental function. 12. Severability. If any provision of this Agreement or the application to any person or circumstance is, to any extent, judicially determined to be invalid or unenforceable, the remainder of the Agreement, or the application of the provision of persons or circumstances other than those as to which it is invalid or unenforceable, is not affected and is enforceable, provided the invalid provision does not substantially alter the Agreement or make execution impractical. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and delivered by the undersigned, being duly authorized by their respective governing bodies. Executed on December 14, 2021 Executed on December 14, 2021 COUNTY OF OAKLAND By: Nash, Water Resources Commissioner County Agency) City of Pontiac Sewage Disposal System COPNTY OF OAKLAND By: Nash, Water Resources Commissioner County Agency) Clinton -Oakland Sewage Disposal System r�I 4jjeaJ" 1 5.m W RC WPTER RESOUPCE$ COMMISSIONER DISCLAIMER: on dii In IMmap k coin'„„d Imm,amidi deed, p L plbfl I, o, thk lnI—lIt, 1. geekIr,, tIli .o°..na LS a:, �, ,ttr .14 Perry Streety { >; I�'�',� {�LS�Dlversion �< Liff Sf6tion I• J Bay Street Lift Station n I n; — It EXHIBIT A Clinton -Oakland SIDS and Pontiac SIDS Shared Use I _ � N �1 It i in � I lit In gyro 1pN" f 1 { o' I F:E; THSR S7.0 N'E-`'• '- `, y'ar 4 i it f j 1 f Y In ( 10 500 1,000 2,000 tl1 I eet)11 I I i L$ Lift Station W W Tf Wastewater Treatment Plant Shared Use ® Sanitary Main Non -Gravity Sanitary Interceptor ®®• Non -Gravity Sanitary Main EXHIBIT B CAPITAL COST CALCULATION Line Description Value j (a) Total Forcemain Length (feet) 11,000 (b) Estimated Length of Forcemain Shared (feet) 10,299 (c) Percent of Forcemain Shared by Length 93.627% (d) Average PSPS Flow Rate (cfs) 11.3 (e) Average Bay Street Flow Rate (cfs) 1.3 (f) Estimated Buy -In Percent 11.504% (g) Perry Street Forcemain Bid Tab Cast $3,714,028 (h) Percentage of Cost 10.771% (i) Estimated Buy -In Cost I $400,048.00 %I